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<DIV><FONT face=Arial size=2>
<DIV><FONT face=Tahoma size=4><STRONG>AGRICULTURAL USE / CENTRAL
VALLEY</STRONG></FONT></DIV>
<DIV><FONT face=Tahoma size=4><STRONG>Farms look to
longevity</STRONG></FONT></DIV>
<DIV><FONT face=Tahoma size=4><STRONG>Reliable water supply lets local growers
devote more acres to permanent crops.</STRONG></FONT></DIV>
<DIV><FONT face=Tahoma size=4><STRONG>Fresno Bee - 8/8/04</STRONG></FONT></DIV>
<DIV><FONT face=Tahoma size=4><STRONG>By Robert Rodriguez, staff
writer</STRONG></FONT></DIV>
<DIV>
<P><FONT size=4></FONT></P>
<P><FONT size=4>Rows of cotton, tomatoes and sugar beets are giving way to
orchards of almonds and pistachios as farmers in western Fresno County search
for more profitable crops. </FONT></P>
<P><FONT size=4>Within the sprawling 600,000-acre Westlands Water District --
the region's primary water source -- farmers say a more reliable water supply
coupled with a booming market for nuts are driving the growth in permanent
crops.</FONT></P>
<P><FONT size=4>The shift adds to the diversity of crops grown in the area and
holds the promise of more year-round work for residents within the district's
boundaries.</FONT></P>
<P><FONT size=4>Of the new permanent plantings within the district, almonds lead
the way.</FONT></P>
<P><FONT size=4>Almond acreage grew by 29% to 37,554 acres from 2000 to 2003.
During the same period, pistachio acreage rose by 117%, to 11,158 acres. And
table grape acreage grew by 22%, to 1,235 acres.</FONT></P>
<P><FONT size=4>"We have always believed that the stability of water would
result in farmers making the investment in permanent crops," said Tupper Hull,
spokesman for the Westlands Water District. "Just the fact that farmers are
making more costly investments that produce higher-value crops is very
encouraging."</FONT></P>
<P><FONT size=4>Hull said a combination of factors, including the purchase of
55,000 acres of drainage-impacted land and policy changes within federal
regulatory agencies, have created a more dependable flow of water. The district
also plans to purchase 45,000 more acres over the next two years. </FONT></P>
<P><FONT size=4>"There is no doubt that when you go into planting permanent
crops you aren't going to do it without a reliable water supply," said Vince
Marshall of Gragnani Farms. "Water is always an issue."</FONT></P>
<P><FONT size=4></FONT></P>
<P><FONT size=4>Marshall and his family have planted about 1,000 acres of
almonds, about half nonbearing. It takes about three years before a newly
planted tree can produce a crop. Marshall realizes he is taking a gamble on
planting a crop that won't earn money for several years, but he and other
farmers are awed by the almond industry's performance over the past several
years.</FONT></P>
<P><FONT size=4>Despite record crops that eclipsed one billion pounds, exports
and domestic consumption are on the rise.</FONT></P>
<P><FONT size=4>Per capita consumption of almonds in the United States increased
57% between 1996 and 2000, according to the USDA's Agricultural Research
Service. And domestic shipments, during the same period, increased
54%.</FONT></P>
<P><FONT size=4>In the almond industry, California reigns supreme, producing
nearly 100% of the nation's supply and 88% of the world's almonds.</FONT></P>
<P><FONT size=4>This summer, almond exports topped $1 billion and are expected
to reach $1.5 billion by year's end.</FONT></P>
<P><FONT size=4>Prices for almonds also are at a premium, ranging from $2.25 to
$2.35 a pound for the nonpareil supreme variety of almonds.</FONT></P>
<P><FONT size=4>"Almonds is one of the greatest ag stories in the U.S.," said
Susan Brauner, spokeswoman for Blue Diamond Growers in Sacramento. "And the
outlook is just as good through the end of the decade."</FONT></P>
<P><FONT size=4>But Brauner said Blue Diamond officials caution growers against
overplanting.</FONT></P>
<P><FONT size=4>Marshall said he realizes that every industry has its limits.
That is why he and other west Fresno County growers are adding almonds as part
of diverse operations.</FONT></P>
<P><FONT size=4>"We aren't going to put all our eggs into one basket," Marshall
said. "Most of our ground is suitable for rows crops, and we need to have that
option."</FONT></P>
<P><FONT size=4>The Gragnani family grows 15 commodities, including traditional
west Fresno County staple crops such as cotton, onions, alfalfa, wheat and sugar
beets.</FONT></P>
<P><FONT size=4>The family farms 12,000 to 14,000 acres, depending on the season
and the crop's price.</FONT></P>
<P><FONT size=4>Economist Wendy Illingworth, who wrote a report for Westlands on
the economic impact of land retirement, said permanent crops also can be more
appealing because they are not tied to federal price support programs such as
cotton.</FONT></P>
<P><FONT size=4>"We are talking about crops that don't have to worry about
anything other than the market," Illingworth said. "These are crops that are
independent of political issues."</FONT></P>
<P><FONT size=4>Illingworth's 2002 analysis found that as Westlands acquires
land and takes it out of production, more water becomes available for land
remaining in production.</FONT></P>
<P><FONT size=4>Westlands farmer Mark Borba, a cotton, garlic and
processing-tomato grower, has debated for 10 years the decision to plant
almonds. He recently planted 480 acres of almonds and will plant an additional
2,000 acres this fall.</FONT></P>
<P><FONT size=4>"We have watched this a long time, and we really believe almonds
has a bright future and a potential for profit," Borba said. "That's more than
can be said for other crops. And as cotton growers, we know we have a safety net
right now, but we also know that won't be forever."</FONT></P>
<P><FONT size=4>Over the past three years, cotton acreage in Westlands has
dropped by 32%, or 58,000 acres.</FONT></P>
<P><FONT size=4>At one time, Borba farmed about 9,000 acres of cotton, but he
has whittled that down to 4,400.</FONT></P>
<P><FONT size=4>Borba also sees almonds as a good fit for Westlands' soil and
sometimes irregular landscape. Unlike some row crops that depend on flat ground
to accommodate sprinkler irrigation, almonds can be watered by drip irrigation
on uneven terrain.</FONT></P>
<P><FONT size=4>Research by the University of California also has shown that
drip irrigation is more efficient and requires less water than other irrigation
methods such as flood irrigation or sprinklers.</FONT></P>
<P><FONT size=4>Pistachios also are being planted in greater numbers in west
Fresno County.</FONT></P>
<P><FONT size=4>"I've seen fields that used to be dryland wheat and pastureland
now with pistachio trees," said Bob Klein, director of research for the
California Pistachio Commission.</FONT></P>
<P><FONT size=4>Klein said the pistachio industry is a relatively new one in
California. Commercial production did not begin until the mid-1970s, when a 1.5
million-pound crop was produced on about 4,350 acres.</FONT></P>
<P><FONT size=4>The industry is now at 350 million pounds grown on 93,000 acres,
with much of it centered in the San Joaquin Valley counties including Kern,
Kings, Fresno, Madera and Tulare.</FONT></P>
<P><FONT size=4>"It's been profitable and it remains profitable," Klein
said.</FONT></P>
<P><FONT size=4>Although Iran is the world's leading pistachio grower, Klein
said California's nuts are superior in quality and preferred in Europe, Japan
and Canada. About 40% of California's pistachio crop is exported.</FONT></P>
<P><FONT size=4>Health studies also have shown that eating nuts, including
almonds and pistachios, is beneficial.</FONT></P>
<P><FONT size=4>Longtime west-side farmer John Diener is optimistic about
Westlands' changing landscape.</FONT></P>
<P><FONT size=4>Diener has dabbled in wine grapes since 1997 and recently
planted 30 acres of French colombard grapes.</FONT></P>
<P><FONT size=4>Diener said many of the new vineyards and nut crops are being
planted on the district's western edge, along Interstate 5.</FONT></P>
<P><FONT size=4>The area's gentle slope protects crops from foggy weather and
brackish water, a chronic problem in the district's poorly drained
areas.</FONT></P>
<P><FONT size=4>Some farmers refer to the area as the "banana belt" for its
temperate climate.</FONT></P>
<P><FONT size=4>While Diener agrees that Westlands will see more permanent
plantings, he estimates that farmers will devote about one-third of their land
to permanent crops.</FONT></P>
<P><FONT size=4>"We do feel secure about a portion of our water supply," Diener
said. "But we are not going to take cotton acreage and turn that into permanent
crops. We are not going to become a Selma or Kingsburg; we just don't have the
water for that."</FONT></P>
<P><FONT size=4>Economist Illingworth said that while the switch to more
permanent crops likely will lead to fewer jobs, there also is the potential for
more year-round work for residents in the west side communities, including
Mendota, Huron, Firebaugh, San Joaquin, and Tranquillity.</FONT></P>
<P><FONT size=4>Cities in west Fresno County suffer from high unemployment,
largely because farm work is seasonal.</FONT></P>
<P><FONT size=4>Illingworth said it is too soon to say how many jobs have been
created. "Over time, we still believe it will have an impact," Illingworth
said.</FONT></P>
<P><FONT size=4>Rural city officials are hoping that will be true.</FONT></P>
<P><FONT size=4>Firebaugh City Manager Jose Antonio Ramirez said many workers
lost jobs when some Westlands farmers took land out of production near his
city.</FONT></P>
<P><FONT size=4>"Some of these people have gone to Hollister or Salinas to work
because they can't find any here," Ramirez said. "We hear that farmers are
planting more permanent crops, like almonds, and we hope that it leads to more
jobs. We don't want to see them planting too much and overdoing it."</FONT></P>
<P><FONT size=4>Richard Fosse, director of the I-5 Business Development
Corridor, said these changes on the west side remind local leaders that economic
diversification is the key to survival.</FONT></P>
<P><FONT size=4>It's why communities such as Mendota, cantaloupe capital of
California, are pursing a federal prison project.</FONT></P>
<P><FONT size=4>"But it's tough, real tough for some cities," Fosse said. "We
are out in the middle of nowhere."#</FONT></P>
<P><FONT size=4></FONT></P>
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